Title owners insurance - to buy or not to buy??

3 Replies

I was looking at the Closing disclosure from my lender and noticed that the Title owners insurance is optional. What are thoughts on opting out on that?

Its not cheap.

Buy it.

This is not the time to "save" money.

Claims are fairly rare but when they do arise don't be the one holding the grenade. 

I always purchase owner's title insurance.  There may be ways to reduce costs, especially if the sellers have recently purchased it, like within 5 years or so, as there might be a reduced rate available.  Worth asking.  Title claims can be very expensive.  I'm working with sellers right now that have a claim with their owner's title policy regarding access to the nearest public road that they never imagined would crop up until they tried to sell, and the legal costs to correct it without owner's title insurance would have ruined the investment.  I also have had issues where the neighbors were encroaching on my own land, and just letting them know I have owner's title and happy to file a claim if they continue their activity stopped their clearing along my property line, although I did see surveyors out there again recently so will see what develops.  But it's comforting knowing if they do contest it that I have the policy.   I think if I was knowledgeable enough to do my own research and felt comfortable that I had no issues, I would go without it.  But I don't, so I purchase it.    

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